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Meta Platforms:Quarterly Results/2024 Q4: Difference between revisions
Meta Platforms:Quarterly Results/2024 Q4 (view source)
Revision as of 15:12, 15 January 2025
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=== Digital ad spending was strong during the quarter === | === Digital ad spending was strong during the quarter === | ||
* According to a [https://www.investing.com/news/stock-market-news/digital-ad-spending-strong-in-the-fourth-quarter-wedbush-says-3811639 survey] by Wedbush, ad spending was strong during the quarter. 49% of 200 US-based marketers said they increased their digital ad spend by 10% year over year. In Q3, 43% of the marketers had reported the same level of growth. The report notes that 54% of markers that use Meta said they increased their spend by more than 10% year-on-year in Q4, up from 40% in Q3. "Our survey work indicates strong [year-over-year] growth in [the fourth quarter] and an improvement in advertiser sentiment versus our [third quarter] survey," the analysts said. | * According to a [https://www.investing.com/news/stock-market-news/digital-ad-spending-strong-in-the-fourth-quarter-wedbush-says-3811639 survey] by Wedbush, ad spending was strong during the quarter. 49% of 200 US-based marketers said they increased their digital ad spend by 10% year over year. In Q3, 43% of the marketers had reported the same level of growth. The report notes that 54% of markers that use Meta said they increased their spend by more than 10% year-on-year in Q4, up from 40% in Q3. "Our survey work indicates strong [year-over-year] growth in [the fourth quarter] and an improvement in advertiser sentiment versus our [third quarter] survey," the analysts said. The analysts pointed out that expectations for Q1 indicate a "relatively stable" uptick in ad spending, with 48% of advertisers planning to increase their ad budgets by 10% or more. | ||
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=== Meta could report mixed Q4 earnings === | |||
* Overweight, $655->$700: KeyBanc [https://thefly.com/permalinks/entry.php/id4049217/META-Meta-Platforms-price-target-raised-by--at-KeyBanc-heres-why expects] a mixed earnings season for the likes of Meta as long-term tailwinds collide with near-term headwinds. The analysts said misses due to FX may create buying opportunities. | |||
=== Meta Platforms is gaining ad market share === | |||
* Overweight, $600->$660: DT Cowen [https://thefly.com/permalinks/entry.php/id4050332/META-Meta-Platforms-price-target-raised-by--at-TD-Cowen-heres-why said] their ad survey indicates that Facebook and Instagram share of world-wide digital advertising could rise from 29% in 2024 to 32% by 2029, but partially offset by modest Facebook share loss. | |||
=== Cautious outlook for Q1 === | |||
* Overweight, $641->$685: Wells Fargo [https://thefly.com/permalinks/entry.php/id4050013/META-Meta-Platforms-price-target-raised-by--at-Wells-Fargo-heres-why said] Q1 has the possibility to disappoint. The analysts said they adjusted their estimates downwards due to weaker FX and more mixed exit rate to Q4 advertising growth. | |||
=== AI could sustain advertising revenue growth in 2025 === | |||
* Outperform, $650->$750: JMP Securities [https://thefly.com/permalinks/entry.php/id4044609/META;DASH;ODD-Meta-Platforms-price-target-raised-by--at-JMP-Securities-heres-why believes] AI could sustain Meta's advertising revenue growth in 2025 as it gets integrated deeply. | |||
== Advertising spend and pricing insights == | == Advertising spend and pricing insights == | ||